In a meeting convened by the GIPSA on Saturday to discuss about the restructuring of four PSU general insurance companies, Suchita Gupta, CMD, National Insurance Company and chairperson, GIPSA, had informed the unions that the offering of 12 per cent wage hike to the employees of the industry, made on Aug 4, was final
However, as the unions, with a lot facts and figures on the performances of PSU general insurers, still insisting on that the industry’s wage revision to be on the par with LIC , GIPSA responded, “It would revert in another three or four days.”
New Delhi:
Deadlock over the conclusion of the latest round of wage revision talks of the five PSU general insurers including GIC Re, has continued, as unions of their employees have stuck to their demands firmly for a pay parity with Life Insurance Corporation(LIC).
Earlier, in a meeting convened by the GIPSA on Saturday to discuss about the restructuring of four PSU general insurance companies to make them profitable, Suchita Gupta, CMD, National Insurance Company and chairperson of GIPSA, had informed the unions that the offerings of 12 per cent wage hike to the employees of the industry, made on Aug 4, was final and can’t be increased further.
Sourabh Mishra, joint secretary, department of financial services (DFS), CMDs and general mangers of PSU general insurance companies were present in the meeting.
In fact, Mishra in his address along with other issues also had urged the unions to accept 12 per cent hike as wage revision.
However, as the unions, with a lot supporting facts and figures on the performances of PSU general insurers, still insisted on that the industry’s new wage revision has to be on par with LIC, GIPSA responded, “It would revert on the issue in another three or four days after consulting with DFS.”
Also, the government represented by Mishra and top management of other companies wanted to discuss about the next round of the wage revision, which will be done on the basis of performance of each employees and by the individual companies separately, but the unions wanted first to resolve the ongoing negotiation amicably before opening a new chapter.
Apart from the fact that historically, there has been a pay parity among PSU banking, LIC and non-life industry, mainly, the arguments of the unions in favour of their demands for a higher wage revision, than 12 percent, is based on the facts that between 2012-17, all five PSUs were making profit and had paid dividend to the government regularly during that period.
The haggling over quantum of pay rise, an unscheduled agenda in the meeting, between the unions and top management of the companies had continued over two-hours in the meeting before RR Singh,CEO, GIPSA, intervened and sought time to reconsider the issue.
Sources in the industry point out that there is already a thinking gaining on the ground where a number of employees feel 12 per cent hike as wage revision is `OK’ for them and unions should accept the offer without delay.
“A lot of employees are happy and approve a 12 per cent wage hike and are keen to receive their arrears early rather than demanding higher wages on par with LIC,” said sources in the industry.
GIPSA is the official coordinating body for the four PSU general insurers, New India Assurance, Oriental Insurance Company, National Insurance Company and United India Insurance and GIC Re which a total workforce numbering over 44,000.
Earlier, refusing to accept the latest offer of 12 per cent pay hike with full five year arrears since August 2017 made by the GIPSA, the unions of PSU general insurance industry had said it was far much lesser than the wage revision granted to state owned Life Insurance Corporation of India (LICI) and ECGC.
“Pay scales offered to us as on 01st August 2017 with loading factor of 10 per cent put us in most disadvantage when compared to those granted to LICI and ECGC,’’ said unions on in their letter to Suchita Gupta, chairperson,GIPSA.
The government last year had approved a 16 per cent wage revision with arrears and 15 per cent of hikes with arrears for the employees of LIC and PSU banking industry respectively.
The attitude of Gipsa and DFS need to change .
After all unions demanding pay parity with LIC.
What about revision of pension for employees retired before Aug.2017:
The Emploees and officers naturally expect wage revision at par with LIC. Since long time ,wage revision of LIC & GIC was at par. GIPSA & DFS should change their attitude and may conclude a meaningful wage revision.
How can these morons in the unions ask for parity with LiC? Pay and bonuses are dependent on the profitability of the enterprise……why should employees of a loss making PSU ask for parity in pay with a profit making PSU?
It is not only about profit but insurance claims paid to the people especially for all kinds of Govt schemes and providing public services, what profit is given by purely central or state govt employees?PSUs general insurance companies have paid dividends to the govt for decades..This is the first time in wage revision history that out of 4 PSU cos 3 are financially down but were profitable till 2017.
The current wage revision has to be done based on their performance between 2012-17.
The companies have made profits for the last five years and have paid dividends to the government. On what basis are you calling them loss making PSU’s? Before posting something, get your facts right. Lest you expose yourself as a ignorant bumpkin.
Are you dumb or what? During 2012-17 all PSGICs were profit making. Nothing less than 15-16% is acceptable from this anti worker government.
Factually as on date, PS GICs are crumbling under loss, surviving on GOI subsidy. However, demand of unions are fully justified because this revision in wages is on performance from 2012 to 17. Simultaneously Pensioners are demanding revision of pension which never happened from 1997 till date even once. Common prudence — if 12% hike is possible, from the same source, wages at par with LIC is possible and pension revision as well.
IF THEY STICK ON THEIR MEETING WHY GIPSA CALLED THIS MEETING AND WHY THEY NEED ANOTHER 3 TO 4 DAYS. LAST MEETING WAS ON 4TH AUGUST ALMOST 3 WEEKS TIMES ALREADY LAPSED.
The most legitimate demands of GIC psu employees at par with LICI should be fulfilled as most of government’s public welfare loss policies are to be borne by non life psu insurers.
Implementing those government’s policies and losses incurred by insurers can’t be the cause of most delayed settlement of pay revision (due from August 2017)or much more less than LICI as offered 12%.
Management should be reasonable to the real facts faced always by psu insurers.
Procuring market businesses such motor, mediclaim, fire, marine etc. and offering discounts to the parties, psu insurers are tied up with restrictions or norms where as all private insurers are least bothered IRDA rules which is the most prominent cause of business diversion from psu to private insurers.
Therefore, to gear up all 44000 psu employees handsome wage revision at par with LICI is justified and government should sensitive to this touchy issues as huge amounts of devident and GST is being given to our government every year.
Useless attitude of DFS and GIPSA. Since, it’s the last wage offer by GIPSA,.they should offer something in parity with LICI
Govt’s attitude on wage revision and privatisation represent India’s economy on a larger scale. Achhe dino mai ghr barbaad nhi hote.
Govt says we can write off loans of bigger fish but we cannot stop increasing tax on daily needs
Govt wants to say, we cannot provide jobs…or secure life to people..that’s not what a govt does
With such acts of privatising various sectors imply that govt is incompetent for governance or running a country and departments that are there for public service
Govt says people with will to study must become businessman
If businessmen are great for providing services and jobs, good health, why shouldn’t Tata, Ambani or Adani come forward and become PM or President
We all must boycott each and every meeting that Ministry and DFS is planning. It is all hogwash and they are making us fool.
We must prepare now for full non cooperative strike!!
Management and ministry is making us fool and they are backstabbing us.
What is our misfortune is that all Union people knowingly shaking hands with all these corporate slaves ministry people and ruining our lives
Boycott them. Full arrear with WR at Lic par must be released asap
Pay revision will be done, as every time it happens, but what benefits pensioner gets?
Any benefits after putting 40years of service? Because, cost of living is going up and only human being is getting cheap. Think of Pensioner also.
every gipsa employee worked and worked like a covid warrior and lost their lives during covid, and now employees are asking for their legitimate right of wages, during 2017 all companies were showing profits and now due to government schemes all companies are in red
Yes, it’s true that between 2012-17, all Five PSUs were making profit and had been paying Dividend to the Owner Central Government. All the PSUs are asking their wage revision pertaining to the period 2012-17. Central government should not delay wage revision.
All the older generation employees and management want to settle for a lesser wage revision and full arrears. They are being totally selfish and greedy in their approach. They will take the money and go away , ruining the future of younger employees. Unions must not make this mistake to betray the younger employees.
Dear Sir. Already life agents are allowed to sell products of one non life and one health insurers..More than long term or short term, it’s also a matter of livelihood .
The incentives paid in any business is based on the total business a person does for the entity. If the business will be split among 4-5 insurers.( New agents have to book 12 life policies for 5 years so that LIC gives him a life long commission) . The agent will also not able to focus on targets. If private insurers alone with big private banks are importing new business rules from another planet then I stand corrected.
In GIPSA COMPANIES, we have lost more than 500 of our colleagues during covid period to serve the people of the Country as essential services. We made profit double than LIC then why we accept less than LIC ?
Moreover, no body is happy with the offer of 12 percent, but depressed because of discriminatory attitude of GIPSA and DFS for not doing JUSTICE with us.